So, you’ve diligently checked all the boxes on your desired real estate in Lagos or real estate in Abuja property, and the due diligence report gives you the green light to proceed. Congratulations!
It’s exciting to be at this point, but hold on—getting the purchasing stage right is just as critical as the initial checks.
You might be thinking, “I’ve done my homework; why can’t I just buy it?” While comprehensive due diligence is a commendable feat for any serious investor, especially for real estate investing for beginners, it’s not the final shield against potential real estate scams in Nigeria.
As the saying goes, “Crossing the river doesn’t mean you’ve reached the promised land.”
Without proper next steps, even a perfect due diligence report can’t save you from future headaches or financial loss.
Read More: Master Real Estate Due Diligence: Why A Simple Registry Search Won’t Protect Your Investment
At the purchase stage, ensuring your interests are fully protected and your investment secure is paramount.
This article will guide you through the essential next steps in acquiring your property after due diligence.
Fail to follow these, and you could turn a promising real estate investment trust or private property venture into a costly mistake.
Specifically, we will discuss:
Table of Contents
Negotiation Stage: Setting the Foundation for a Smooth Transaction
After successful due diligence, your next crucial step is to negotiate with the seller. This isn’t just about price; it’s about agreeing on terms that protect your investment.
Skipping thorough negotiation can lead to unforeseen costs or unfavorable conditions down the line, potentially jeopardizing your entire real estate investment.
At this stage, you should:
1.Agree on the purchase price: Ensure it aligns with market value and your budget.
2. Discuss payment terms: Whether it’s a full upfront payment or an installment plan, clarify every detail.
Many reputable real estate agents and companies offer flexible installment options. If you opt for this, negotiate payment schedules, penalties for default, and the precise process for ownership transfer.
Overlooking these details now could lock you into terms that drain your resources later.
Payment Stage: Securing Your Investment Safely
Once negotiations are complete, it’s time to make payments according to the agreed-upon terms.
This is where many fall prey to risks if not careful. A simple cash payment, though seemingly convenient, is a gateway to security issues and, more critically, leaves no verifiable trail.
Without proper proof of payment, proving your transaction in the future becomes incredibly difficult, leaving you vulnerable to real estate scams in Nigeria.
Always prioritize electronic bank transfers. This creates an indisputable paper trail, crucial for legal evidence.
As soon as payment is made, insist on a receipt, whether from the bank or, if buying family land, directly from the family with proper acknowledgment.
For added security, consider documenting the transaction with pictures or videos. This meticulous approach safeguards your funds and provides critical evidence should any dispute arise, linking directly to the safety strategies in real estate law.
Contract Drafting and Execution Stage: The Written Agreement
This stage is non-negotiable for securing your investment. Even if you’re making installment payments, engaging a property lawyer in Lekki or any skilled real estate lawyer in Lagos is paramount.
They will draft a comprehensive contract of sale. This document isn’t just a formality; it legally binds both parties, outlining the terms of sale and mutual obligations.
Failure to have a properly drafted contract can leave you exposed. Imagine a scenario where the seller disputes terms you thought were agreed upon – without a written contract, your claim could be baseless, potentially leading to significant financial losses or legal battles.
This is especially vital for implementing sound real estate investing strategies.
Deed of Assignment Drafting and Execution Stage: Formalizing Ownership
This is the linchpin of your property acquisition. After full payment, your lawyer will prepare the Deed of Assignment.
This is the legal document that formally transfers ownership of the property to you. Whether you’ve paid in full upfront or via installments, the signed and dated Deed of Assignment is your undeniable proof of ownership.
Without it, despite payment, you don’t legally own the property, leaving your entire investment in limbo and making it nearly impossible to defend your claim.
If you’re buying from a company, they often have pre-drafted deeds. However, it’s still crucial to have your real estate lawyers in Nigeria review it meticulously.
They will ensure all clauses protect your interests and confirm it’s indeed a Deed of Assignment—not merely a contract of sale, which, as we’ve seen, does not transfer ownership.
Also Read: The Complete Guide to Understanding a Deed of Assignment: Everything You Need to Know
Many people have lost their investments by mistaking a contract of sale for actual ownership transfer, falling prey to what could easily escalate into real estate scams in Nigeria.
Handover of Property Documents: Completing the Chain of Title
Immediately after the Deed of Assignment is signed and dated, the seller must hand over all original property documents.
These include the Certificate of Occupancy (C of O in Nigeria), survey plans, building approvals (for developed properties), and the previous Deed of Assignment covering the property.
These documents are not mere papers; they establish the “chain of title,” proving how the seller legally acquired the property.
Failing to collect all original documents breaks this chain, making it incredibly difficult to prove your legitimate ownership in the future.
This could hinder your ability to sell, mortgage, or even develop the property, leading to endless legal complications down the line and diminishing the value of your real estate investment.
Taking Physical Possession of the Property: Asserting Your Rights
Receiving documents is essential, but it’s not enough. You must take physical possession.
This means actively demonstrating your ownership. If it’s a developed property, collect the keys and change the locks immediately.
For undeveloped land, consider building a fence, mounting a gate, or commencing activities like farming or building (with proper permits).
Delaying physical possession leaves your property vulnerable to encroachment and claims by trespassers.
Without asserting your presence, you risk losing control of your newly acquired asset, inviting potential disputes and even further real estate scams in Nigeria.
Remember, if you plan to develop, obtaining a building approval from the government (like from LASBCA in Lagos State) is a non-negotiable requirement.
Ignoring this critical step could lead to the demolition of your structure, turning your investment into rubble. This is a key aspect of adhering to real estate law.
Perfection of Title at Lands Registry: Government Recognition
The final, crucial step to solidify your ownership is the perfection of title, typically involving applying for Governor’s Consent.
Under real estate law in Nigeria, the Governor’s consent is required for most land transactions to be legally recognized.
This process, usually completed at the state’s lands registry, officially records you as the legitimate owner with the government.
Skipping this step is like building a house without a foundation. Your ownership, while valid between you and the seller, remains unrecognized by the state.
This can lead to serious issues if you ever need to sell, mortgage, or use the property as collateral.
Without perfected title, your property’s value diminishes, and your legal standing becomes precarious, opening doors to future legal challenges. This is a critical aspect of protecting your real estate business venture.
Also Read: Application for C of O and Governor’s Consent
Common Mistakes to Avoid in Your Real Estate Journey
Even with the best intentions, missteps can occur. Avoid these common pitfalls to ensure your real estate investing strategies pay off:
1.Delaying Document Preparation and Execution:
Procrastinating on drafting and executing documents, especially the Deed of Assignment, is a recipe for disaster. Important details can be forgotten, and sellers might become unavailable.
Without the seller’s signature, the Deed of Assignment is worthless. As much as possible, aim to complete payment and document execution simultaneously.
A delay of even a second can introduce unnecessary risk, undermining all previous steps.
2. Poor Communication:
A communication gap between you and the seller can stall the entire transaction. Crucial information your property lawyer in Lekki or real estate lawyers in Lagos need might be delayed or insufficient.
Our firm often creates group chats for all parties to ensure seamless information flow, preventing misunderstandings, misinterpretations, and delays.
Clear communication fosters timely updates, crucial for a smooth real estate in Lagos transaction.
3. Not Reviewing Documents Thoroughly:
Just as you conducted due diligence on the property, meticulously review all legal documents, including the contract of sale and Deed of Assignment.
Never blindly trust a seller’s word, especially if they drafted the documents. Failing to thoroughly review these can lead to overlooked critical clauses, fundamental errors, or unfair terms.
You could find yourself legally bound by a disadvantageous transaction, potentially losing money or facing severe legal issues in the future, a common tactic in sophisticated real estate scams in Nigeria.
Insufficient Funding: Many first-time investors in real estate for beginners only budget for the property’s purchase price.
However, real estate in Lagos and other areas involves professional service fees—legal fees, surveyor fees, building approval fees, Governor’s consent application fees, and even real estate agents’ fees.
Underestimating these costs can lead to an incomplete transaction, leaving you stuck without the funds to finalize your property ownership.
Proper financial planning is as vital as the property search itself for successful real estate investing strategies.
Also Read: 5 Common Legal Mistakes to Avoid When Buying a Property in Lagos
Conclusion: Secure Your Investment with Expert Guidance
As you can see, checking all due diligence boxes is merely the beginning. The subsequent steps to claim and perfect ownership are equally, if not more, critical and demand the expertise of a seasoned property lawyer in Lekki or real estate lawyers in Nigeria.
Each stage is a domino; if one falls out of place, it can trigger a cascade of problems, potentially leading to financial ruin or endless legal battles.
That’s why at Charis Legal Practice, we dedicate our services to sophisticated investors looking to invest a minimum of ₦30 million in real estate investment across Lagos, Ogun, Oyo, and Osun states, ensuring they receive unparalleled real estate law expertise.
If you need our team to guide you through every stage of your property purchase, ensuring a secure and seamless transfer of ownership, click HERE to get started.
Why Choose Charis Legal Practice?
We are your top Real Estate Law Firm in Lagos, Nigeria. As an investor, it’s disheartening to invest significantly only to realize the ownership transfer process was mishandled.
Whether you’re interested in real estate in Lagos, real estate in Abuja, or other southwestern states, you can engage our services from anywhere in the world.
Our virtual legal consultations make expert advice and guidance accessible from your own space.
We have a proven track record, having successfully handled contract drafting services worth billions of Naira. Let us manage all your legal needs with our specifically designed contract drafting services package.
Choose us to safeguard your real estate business and ensure your peace of mind, protecting you from potential real estate scams in Nigeria and setting you up for success in your real estate investing strategies.
If you have any questions or enquiry, you can type them in the comment section.
Happy reading!
Discover more from Charis Legal Practice
Subscribe to get the latest posts sent to your email.